Coinlocally Docs
Perpetual Contracts
Perpetual Contracts
  • Introduction
  • Overview
    • Funding Rate
    • Mark Price
    • Index Price
    • Ladder Balancing Mechanism
    • Insurance Fund
    • Auto-Deleveraging (ADL)
  • USDT Margined Perpetual Contract
    • Introduction
    • Leverage and Position Limit
    • Ladder Maintenance Margin Rate
    • Margin and Profit/Loss Calculations
  • Coin Margined Perpetual Contracts
    • Currency Standard Perpetual Contract
    • Leverage and Position Limit
    • Ladder Maintenance Margin Rate
    • Margin and Profit/Loss Calculations
  • Functions
    • Perpetual Contract User Guide
    • One-way and Two-way Positions
    • Conditional Order
    • Take Profit, Stop Loss TP/SL
    • Take Profit Stop Loss Order
    • Contract Grid
    • Futures Copy
      • How to Carry Out a Transaction
      • Profit Sharing
      • How to Copy Trade
      • Futures Copy Trading Rules
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  • One-Way Position Mode
  • Two-Way Position Mode
  • Key Differences
  1. Functions

One-way and Two-way Positions

One-Way Position Mode

In one-way mode, a contract supports only one active position direction at a time — either long or short.

  • If you place an order in the opposite direction, it will first close your existing position (partially or fully), then open a new position if the volume exceeds the previous one.

Example:

You're trading the BTCUSDT contract:

  • You hold 1 BTC long.

  • You open a 2 BTC short order.

Result:

  • Your 1 BTC long is closed.

  • A 1 BTC short position is established.

Two-Way Position Mode

In two-way mode, a contract supports simultaneous long and short positions. Orders in the opposite direction do not close existing positions — instead, they create independent positions.

⚠️ Positions in opposite directions do not hedge each other. Each is exposed to market movements individually.

Example:

You're trading the BTCUSDT contract:

  • You hold 1 BTC long.

  • You open a 2 BTC short order.

Result:

  • You now hold 1 BTC long and 2 BTC short at the same time.


Key Differences

Feature
One-Way Mode
Two-Way Mode

Active Position Direction

One (long or short)

Both (long and short simultaneously)

Opposite Orders

Close existing, then open new

Open new without closing

Hedging Capability

No

No (positions are independent)

Use Case

Simple directional trades

Advanced strategies (e.g., grid, hedging-style)

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Last updated 1 month ago